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MCLEAN, Va., Jan. 19 /PRNewswire-FirstCall/ -- Capital One Financial
Corporation (NYSE: COF) today announced 28 percent earnings per share growth
for 2004. The company reaffirmed its earnings per share guidance for 2005 to
be between $6.60 and $7.00 per share (fully diluted).
Earnings were $1.5 billion, or $6.21 per share (fully diluted), for the
year compared with $1.1 billion, or $4.85 per share, in 2003. Earnings for the
fourth quarter of 2004 were $195.1 million, or $.77 per share (fully diluted),
compared with $265.7 million, or $1.11 per share, for the fourth quarter of
2003, and $490.2 million, or $1.97 per share, in the previous quarter. Higher
marketing and provision expenses in the fourth quarter accounted for the lower
earnings compared to the previous quarter and fourth quarter of 2003.
"Capital One generated strong earnings and loan growth again in 2004, as
it has each year since its initial public offering ten years ago," said
Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer. "The
company is well positioned for continued success in 2005 in both our US credit
card and our growing and profitable diversification businesses."
During the fourth quarter, managed loans grew $4.4 billion from $75.5
billion to $79.9 billion. Annual growth in managed loans was $8.6 billion, or
12 percent, from December 31, 2003. The company continues to expect that
managed loans will grow at a rate of between 12 and 15 percent during 2005.
The managed charge-off rate increased to 4.37 percent in the fourth
quarter of 2004 from 4.05 percent in the previous quarter, but decreased from
5.32 percent in the fourth quarter of 2003. The increase in the managed
charge-off rate in the fourth quarter of 2004 included a one-time 10 basis
point effect from a change in our charge-off recognition policy for auto loans
in bankruptcy. The company continues to expect its quarterly managed charge-
off rate to stay between 4.0 and 4.5 percent in 2005, with seasonal
variations. Additionally, the company increased its allowance for loan losses
by $110 million in the fourth quarter of 2004, largely driven by the growth in
reported loans. The company expects a seasonal reduction in its allowance for
loan losses in the first quarter of 2005, and a likely increase for full
year 2005.
The managed delinquency rate (30+ days) decreased to 3.82 percent as of
December 31, 2004 from 3.90 percent as of the end of the previous quarter. The
managed delinquency rate as of December 31, 2003 was 4.46 percent. Capital
One's managed revenue margin decreased to 12.66 percent in the fourth quarter
of 2004 from 13.03 percent in the previous quarter. The company's managed
revenue margin was 13.89 percent in the fourth quarter of 2003.
"Return on managed assets for 2004 increased to 1.73 percent from 1.52
percent in 2003," said Gary L. Perlin, Capital One's Chief Financial Officer.
"Although we expect to see a modest decline in our revenue margin in 2005 from
our ongoing diversification and bias towards lower loss assets, we expect to
continue to improve our operating efficiency and thus maintain a return on
managed assets of between 1.7 and 1.8 percent in 2005, with some quarterly
variability."
Fourth quarter marketing expenses increased $193.4 million to $511.1
million from $317.7 million in the previous quarter, largely due to the launch
of several new programs. Marketing expenses were $290.1 million in the fourth
quarter of 2003. Marketing expenses for 2004 were $1.3 billion, a 20 percent
increase over the $1.1 billion in 2003. The company expects annual marketing
spend for 2005 to be similar to 2004.
Annualized operating expenses as a percentage of average managed loans
increased to 5.44 percent in the fourth quarter of 2004, from 5.35 percent in
the previous quarter and decreased from 5.82 percent in the fourth quarter of
2003. Included in fourth quarter 2004 operating expenses were charges totaling
$42.1 million for a combination of employee termination benefits and continued
facility consolidations. The company expects about $50 million in additional
restructuring charges in 2005 related to programs initiated in 2004.
In the fourth quarter of 2004, the company completed the sale of its
French loan portfolio and recorded a gain of $41.1 million, which is included
in non-interest income. As announced during the second half of 2004, the
company signed definitive agreements to acquire HFS Group, Onyx Acceptance
Corporation, and eSmartloan. During the first quarter of 2005, Capital One
completed the HFS and Onyx transactions, as well as the acquisition of
InsLogic, a small insurance brokerage firm. The company expects to close the
eSmartloan acquisition later in the first quarter of 2005.
The company generates earnings from its managed loan portfolio, which
includes both on-balance sheet loans and securitized (off-balance sheet)
loans. For this reason, the company believes managed financial measures to be
useful to stakeholders. In compliance with Regulation G of the Securities and
Exchange Commission, the company is providing a numerical reconciliation of
managed financial measures to comparable measures calculated on a reported
basis using generally accepted accounting principles (GAAP). Please see the
schedule titled "Reconciliation to GAAP Financial Measures" attached to this
release for more information.
The company cautions that its current expectations in this release, in the
presentation slides available on the company's website and on its Form 8-K
dated January 19, 2005 for 2005 earnings, charge-off rates, revenue margins,
return on assets, allowance for loan losses, loan growth rates, marketing, the
composition of loan growth, restructuring charges, and tax rate are forward-
looking statements and actual results could differ materially from current
expectations due to a number of factors, including: continued intense
competition from numerous providers of products and services which compete
with our businesses; changes in our aggregate accounts and balances, and the
growth rate and composition thereof; the company's ability to continue to
diversify its assets; the company's ability to access the capital markets at
attractive rates and terms to fund its operations and future growth; changes
in the reputation of the credit card industry and/or the company with respect
to practices or products; the success of the company's marketing efforts; the
company's ability to execute effective tax planning strategies; the company's
ability to execute on its strategic and operating plans; and general economic
conditions affecting consumer income and spending, which may affect consumer
bankruptcies, defaults, and charge-offs.
A discussion of these and other factors can be found in Capital One's
annual report and other reports filed with the Securities and Exchange
Commission, including, but not limited to, Capital One's report on Form 10-Q
for the quarter ended September 30, 2004.
About Capital One
Headquartered in McLean, Virginia, Capital One Financial Corporation
(http://www.capitalone.com) is a bank holding company whose principal
subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending
products and Capital One Auto Finance, Inc., offers automobile and other motor
vehicle financing products. Capital One's subsidiaries collectively had 48.6
million accounts and $79.9 billion in managed loans outstanding as of December
31, 2004. Capital One, a Fortune 500 company, is one of the largest providers
of MasterCard and Visa credit cards in the world. Capital One trades on the
New York Stock Exchange under the symbol "COF" and is included in the S&P 500
index.
NOTE: Fourth quarter 2004 financial results, SEC Filings, and fourth
quarter earnings conference call slides are accessible on Capital One's home
page (http://www.capitalone.com). Choose "Investors" on the bottom right
corner of the home page to view and download the earnings press release,
slides, and other financial information. Additionally, a webcast of today's
5:00pm (EST) earnings conference call is accessible through the same link.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY REPORTED BASIS
2004 2004 2003
(in millions, except per share
data and as noted) Q4 Q3 Q4
Earnings (Reported Basis)
Net Interest Income $784.6 $775.4 $664.1
Non-Interest Income 1,521.5 (1) 1,539.4 (1) 1,437.5
Total Revenue (2) 2,306.1 2,314.8 2,101.6
Provision for Loan Losses 467.1 267.8 390.4
Marketing Expenses 511.1 317.7 290.1
Operating Expenses 1,045.4 (3) 994.3 (3) 999.3
Income Before Taxes 282.5 735.0 421.7
Tax Rate 30.9 % 33.3 % 37.0 %
Net Income $195.1 $490.2 $265.7
Common Share Statistics
Basic EPS $0.82 $2.07 $1.16
Diluted EPS $0.77 $1.97 $1.11
Dividends Per Share $0.03 $0.03 $0.03
Book Value Per Share (period end) $33.99 $32.67 $25.75
Stock Price Per Share (period
end) $84.21 $73.90 $61.29
Total Market Capitalization
(period end) $20,783.0 $17,936.8 $14,405.7
Shares Outstanding (period end) 246.8 242.7 235.0
Shares Used to Compute Basic EPS 239.2 236.4 228.1
Shares Used to Compute Diluted
EPS 253.0 249.0 239.2
Reported Balance Sheet Statistics
(period avg.)
Average Loans $36,096 $34,772 $31,297
Average Earning Assets $49,500 $47,267 $40,792
Average Assets $53,339 $51,496 $45,002
Average Equity $8,221 $7,561 $5,887
Return on Average Assets (ROA) 1.46 % 3.81 % 2.36 %
Return on Average Equity (ROE) 9.49 % 25.93 % 18.05 %
Reported Balance Sheet Statistics
(period end)
Loans $38,216 $35,161 $32,850
Total Assets $53,747 $51,960 $46,284
Capital (4) $9,231 $8,769 $6,882
Loan growth $3,055 $610 $2,232
% Loan Growth Q Over Q
(annualized) 35 % 7 % 29 %
% Loan Growth Y Over Y 16 % 15 % 20 %
Capital to Assets Ratio 17.17 % 16.88 % 14.87 %
Capital plus Allowance to Assets
Ratio 19.98 % 19.56 % 18.31 %
Revenue & Expense Statistics
(Reported)
Net Interest Income Growth
(annualized) 5 % 36 % (23)%
Non Interest Income Growth
(annualized) (5)% 41 % 22 %
Revenue Growth (annualized) (2)% 39 % 7 %
Net Interest Margin 6.34 % 6.56 % 6.51 %
Revenue Margin 18.64 % 19.59 % 20.61 %
Risk Adjusted Margin (5) 15.85 % 17.07 % 17.02 %
Operating Expense as a % of
Revenues 45.33 % 42.95 % 47.55 %
Operating Expense as a % of Avg
Loans (annualized) 11.58 % 11.44 % 12.77 %
Asset Quality Statistics
(Reported)
Allowance $1,505 $1,395 $1,595
30+ Day Delinquencies $1,472 $1,407 $1,573
Net Charge-Offs $345 $298 $366
Allowance as a % of Reported
Loans 3.94 % 3.97 % 4.86 %
Delinquency Rate (30+ days) 3.85 % 4.00 % 4.79 %
Net Charge-Off Rate 3.82 % 3.43 % 4.68 %
(1) Includes a $41.1 million gain resulting from the sale of the French
loan portfolio in Q4 2004 and a $31.5 million gain resulting from the
sale of a joint venture investment in South Africa in Q3 2004.
(2) In accordance with the Company's finance charge and fee revenue
recognition policy, the amounts billed to customers but not recognized
as revenue were as follows: Q4 2004 - $276.8, Q3 2004 - $269.7, Q2
2004 - $263.5 million, Q1 2004 - $285.5 million and Q4 2003 - $454.8
million.
(3) Includes employee termination benefits and charges for facility
consolidation related to corporate-wide cost reduction initiatives of
$42.1 million, $26.7 million and $56.0 million for Q4 2004, Q3 2004
and Q2 2004, respectively. In addition, Q3 2004 had charges of $20.6
million related to a change in fixed asset capitalization thresholds
and $15.8 million related to impairment of internally developed
software.
(4) Includes preferred interests and mandatory convertible securities.
(5) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
CAPITAL ONE FINANCIAL CORPORATION (COF)
FINANCIAL & STATISTICAL SUMMARY MANAGED BASIS (1)
2004 2004 2003
(in millions) Q4 Q3 Q4
Earnings (Managed Basis)
Net Interest Income $1,701.8 $1,670.4 $1,571.7
Non-Interest Income 1,099.0 (2) 1,099.8 (2) 1,077.5
Total Revenue (3) 2,800.8 2,770.2 2,649.2
Provision for Loan Losses 961.8 723.2 938.0
Marketing Expenses 511.1 317.7 290.1
Operating Expenses 1,045.4 (4) 994.3 (4) 999.3
Income Before Taxes 282.5 735.0 421.7
Tax Rate 30.9 % 33.3 % 37.0 %
Net Income $195.1 $490.2 $265.7
Managed Balance Sheet Statistics
(period avg.)
Average Loans $76,930 $74,398 $68,679
Average Earning Assets $88,461 $85,045 $76,277
Average Assets $93,574 $90,543 $81,733
Return on Average Assets (ROA) 0.83 % 2.17 % 1.30 %
Managed Balance Sheet Statistics
(period end)
Loans $79,861 $75,457 $71,245
Total Assets $94,792 $91,665 $83,999
Loan Growth $4,404 $2,090 $3,985
% Loan Growth Q over Q (annualized) 23 % 11 % 24 %
% Loan Growth Y over Y 12 % 12 % 19 %
Capital to Assets Ratio 9.74 % 9.57 % 8.19 %
Capital plus Allowance to Assets
Ratio 11.33 % 11.09 % 10.09 %
Number of Accounts (000's) 48,573 47,224 47,038
% Off-Balance Sheet Securitizations 52 % 53 % 53 %
% at Introductory Rate 7 % 6 % 10 %
Revenue & Expense Statistics
(Managed)
Net Interest Income Growth
(annualized) 8 % 21 % 19 %
Non Interest Income Growth
(annualized) 0 % 35 % 11 %
Revenue Growth (annualized) 4 % 27 % 16 %
Net Interest Margin 7.70 % 7.86 % 8.24 %
Revenue Margin 12.66 % 13.03 % 13.89 %
Risk Adjusted Margin (5) 8.87 % 9.48 % 9.10 %
Operating Expense as a % of Revenues 37.33 % 35.89 % 37.72 %
Operating Expense as a % of Avg
Loans (annualized) 5.44 % 5.35 % 5.82 %
Asset Quality Statistics (Managed)
30+ Day Delinquencies $3,054 $2,944 $3,178
Net Charge-Offs $840 $754 $914
Delinquency Rate (30+ days) 3.82 % 3.90 % 4.46 %
Net Charge-Off Rate 4.37 % 4.05 % 5.32 %
(1) The information in this statistical summary reflects the adjustment to
add back the effect of securitization transactions qualifying as sales
under generally accepted accounting principles. See accompanying
schedule - "Reconciliation to GAAP Financial Measures."
(2) Includes a $41.1 million gain resulting from the sale of the French
loan portfolio in Q4 2004 and a $31.5 million gain resulting from the
sale of a joint venture investment in South Africa in Q3 2004.
(3) In accordance with the Company's finance charge and fee revenue
recognition policy, the amounts billed to customers but not recognized
as revenue were as follows: Q4 2004 - $276.8, Q3 2004 - $269.7
million, Q2 2004 - $263.5 million, Q1 2004 - $285.5 million and Q4
2003 - $454.8 million.
(4) Includes employee termination benefits and charges for facility
consolidation related to corporate-wide cost reduction initiatives of
$42.1 million, $26.7 million and $56.0 million for Q4 2004, Q3 2004
and Q2 2004, respectively. In addition, Q3 2004 had charges of $20.6
million related to a change in fixed asset capitalization thresholds
and $15.8 million related to impairment of internally developed
software.
(5) Risk adjusted margin is total revenue less net charge-offs as a
percentage of average earning assets.
CAPITAL ONE FINANCIAL CORPORATION (COF)
SEGMENT FINANCIAL & STATISTICAL SUMMARY - MANAGED BASIS (1)
2004 2004 2003
(in millions) Q4 Q3 Q4
Segment Statistics
US Card:
Loans receivable $48,610 $46,082 $46,279
Net income (loss) $201.9 $414.4 $322.7
Net charge-off rate 4.93 % 4.68 % 6.16 %
Delinquency Rate (30+ days) 3.97 % 4.14 % 4.60 %
Auto Finance:
Loans receivable $9,997 $9,734 $8,467
Net income (loss) $25.1 $55.3 $34.4
Net charge-off rate 3.87 % 2.63 % 4.30 %
Delinquency Rate (30+ days) 5.50 % 5.54 % 7.55 %
Global Financial Services:
Loans receivable $21,240 $19,615 $16,508
Net income (loss) $29.2 $86.8 $3.3
Net charge-off rate 3.30 % 3.26 % 3.69 %
Delinquency Rate (30+ days) 2.81 % 2.65 % 2.70 %
(1) The information in this statistical summary reflects the adjustment
to add back the effect of securitization transactions qualifying as
sales under generally accepted accounting principles. See
accompanying schedule - "Reconciliation to GAAP Financial Measures."
CAPITAL ONE FINANCIAL CORPORATION
Reconciliation to GAAP Financial Measures
For the Three Months Ended December 31, 2004
(dollars in thousands)(unaudited)
The Company's consolidated financial statements prepared in accordance
with generally accepted accounting principles ("GAAP") are referred to as its
"reported" financial statements. Loans included in securitization
transactions which qualified as sales under GAAP have been removed from the
Company's "reported" balance sheet. However, servicing fees, finance charges,
and other fees, net of charge-offs, and interest paid to investors of
securitizations are recognized as servicing and securitizations income on the
"reported" income statement.
The Company's "managed" consolidated financial statements reflect
adjustments made related to effects of securitization transactions qualifying
as sales under GAAP. The Company generates earnings from its "managed" loan
portfolio which includes both the on-balance sheet loans and off-balance sheet
loans. The Company's "managed" income statement takes the components of the
servicing and securitizations income generated from the securitized portfolio
and distributes the revenue and expense to appropriate income statement line
items from which it originated. For this reason the Company believes the
"managed" consolidated financial statements and related managed metrics to be
useful to stakeholders.
Total Total
Reported Adjustments (1) Managed (2)
Income Statement Measures
Net interest income $784,564 $917,263 $1,701,827
Non-interest income $1,521,575 $(422,596) $1,098,979
Total revenue $2,306,139 $494,667 $2,800,806
Provision for loan losses $467,133 $494,667 $961,800
Net charge-offs $345,073 $494,667 $839,740
Balance Sheet Measures
Consumer loans $38,215,591 $41,645,708 $79,861,299
Total assets $53,747,255 $41,044,776 $94,792,031
Average consumer loans $36,096,481 $40,833,492 $76,929,973
Average earning assets $49,500,348 $38,960,722 $88,461,070
Average total assets $53,338,621 $40,235,616 $93,574,237
Delinquencies $1,472,194 $1,581,884 $3,054,078
(1) Includes adjustments made related to the effects of securitization
transactions qualifying as sales under GAAP and adjustments made to
reclassify to "managed" loans outstanding the collectible portion of
billed finance charge and fee income on the investors' interest in
securitized loans excluded from loans outstanding on the "reported"
balance sheet in accordance with Financial Accounting Standards Board
Staff Position, "Accounting for Accrued Interest Receivable Related to
Securitized and Sold Receivables under FASB Statement 140, Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities," issued April 2003.
(2) The Managed loan portfolio does not include auto loans which have been
sold in whole loan sale transactions where the Company has retained
servicing rights.
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Balance Sheets
(in thousands)(unaudited)
December 31 September 30 December 31
2004 2004 2003
Assets:
Cash and due from banks $327,517 $454,843 $382,212
Federal funds sold and resale
agreements 773,695 449,700 1,010,319
Interest-bearing deposits at other
banks 309,999 538,324 587,751
Cash and cash equivalents 1,411,211 1,442,867 1,980,282
Securities available for sale 9,300,454 9,519,089 5,866,628
Consumer loans 38,215,591 35,160,635 32,850,269
Less: Allowance for loan losses (1,505,000) (1,395,000) (1,595,000)
Net loans 36,710,591 33,765,635 31,255,269
Accounts receivable from
securitizations 4,081,271 4,955,739 4,748,962
Premises and equipment, net 817,704 812,724 902,600
Interest receivable 252,857 232,808 214,295
Other 1,173,167 1,230,693 1,315,670
Total assets $53,747,255 $51,959,555 $46,283,706
Liabilities:
Interest-bearing deposits $25,636,802 $25,354,323 $22,416,332
Senior and subordinated notes 6,874,790 6,968,182 7,016,020
Other borrowings 9,637,019 8,490,631 7,796,613
Interest payable 237,227 250,227 256,015
Other 2,973,228 2,966,132 2,746,915
Total liabilities 45,359,066 44,029,495 40,231,895
Stockholders' Equity:
Common stock 2,484 2,440 2,364
Paid-in capital, net 2,711,327 2,463,629 1,937,302
Retained earnings and cumulative
other comprehensive income 5,741,131 5,513,694 4,161,666
Less: Treasury stock, at cost (66,753) (49,703) (49,521)
Total stockholders' equity 8,388,189 7,930,060 6,051,811
Total liabilities and
stockholders' equity $53,747,255 $51,959,555 $46,283,706
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Three Months Ended
December 31 September 30 December 31
2004 2004 2003
Interest Income:
Consumer loans, including past-due fees $1,097,041 $1,083,286 $969,571
Securities available for sale 88,085 84,492 52,328
Other 64,204 60,635 65,884
Total interest income 1,249,330 1,228,413 1,087,783
Interest Expense:
Deposits 267,706 257,349 237,624
Senior and subordinated notes 116,419 121,166 117,791
Other borrowings 80,641 74,523 68,267
Total interest expense 464,766 453,038 423,682
Net interest income 784,564 775,375 664,101
Provision for loan losses 467,133 267,795 390,405
Net interest income after provision
for loan losses 317,431 507,580 273,696
Non-Interest Income:
Servicing and securitizations 915,511 942,587 918,762
Service charges and other customer-
related fees 374,048 385,648 380,925
Interchange 135,843 117,043 106,414
Other 96,173 94,106 31,390
Total non-interest income 1,521,575 1,539,384 1,437,491
Non-Interest Expense:
Salaries and associate benefits 382,646 415,988 408,884
Marketing 511,142 317,653 290,145
Communications and data processing 137,867 112,191 116,217
Supplies and equipment 92,827 94,190 83,804
Occupancy 55,994 41,407 51,645
Other 376,051 330,555 338,777
Total non-interest expense 1,556,527 1,311,984 1,289,472
Income before income taxes and
cumulative effect of accounting
change 282,479 734,980 421,715
Income taxes 87,351 244,819 156,034
Income before cumulative effect of
accounting change 195,128 490,161 265,681
Cumulative effect of accounting change,
net of taxes of $8,832 - -
Net income $195,128 $490,161 $265,681
Basic earnings per share before
cumulative effect of accounting
change $0.82 $2.07 $1.16
Basic earnings per share after
cumulative effect of accounting
change $0.82 $2.07 $1.16
Diluted earnings per share before
cumulative effect of accounting
change $0.77 $1.97 $1.11
Diluted earnings per share after
cumulative effect of accounting
change $0.77 $1.97 $1.11
Dividends paid per share $0.03 $0.03 $0.03
CAPITAL ONE FINANCIAL CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)(unaudited)
Year Ended
December 31 December 31
2004 2003
Interest Income:
Consumer loans, including past-due fees $4,234,420 $3,932,295
Securities available for sale 312,374 192,594
Other 247,626 242,765
Total interest income 4,794,420 4,367,654
Interest Expense:
Deposits 1,009,545 891,650
Senior and subordinated notes 486,812 423,826
Other borrowings 295,085 267,089
Total interest expense 1,791,442 1,582,565
Net interest income 3,002,978 2,785,089
Provision for loan losses 1,220,852 1,517,497
Net interest income after provision
for loan losses 1,782,126 1,267,592
Non-Interest Income:
Servicing and securitizations 3,643,808 3,211,662
Service charges and other customer-
related fees 1,482,658 1,630,185
Interchange 475,810 376,785
Other 297,881 197,292
Total non-interest income 5,900,157 5,415,924
Non-Interest Expense:
Salaries and associate benefits 1,642,721 1,570,415
Marketing 1,337,780 1,118,422
Communications and data processing 475,355 448,110
Supplies and equipment 349,920 344,049
Occupancy 206,614 185,179
Other 1,309,829 1,190,548
Total non-interest expense 5,322,219 4,856,723
Income before income taxes and
cumulative effect of accounting change 2,360,064 1,826,793
Income taxes 816,582 675,914
Income before cumulative effect of
accounting change 1,543,482 1,150,879
Cumulative effect of accounting
change, net of taxes of $8,832 - 15,037
Net income $1,543,482 $1,135,842
Basic earnings per share before
cumulative effect of accounting
change $6.55 $5.12
Basic earnings per share after
cumulative effect of accounting
change $6.55 $5.05
Diluted earnings per share before
cumulative effect of accounting
change $6.21 $4.92
Diluted earnings per share after
cumulative effect of accounting
change $6.21 $4.85
Dividends paid per share $0.11 $0.11
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Reported Quarter Ended 12/31/04
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $36,096,481 $1,097,041 12.16%
Securities available for sale 9,741,355 88,085 3.62
Other 3,662,512 64,204 7.01
Total earning assets $49,500,348 $1,249,330 10.10%
Interest-bearing liabilities:
Deposits $25,580,044 $267,706 4.19%
Senior and subordinated notes 6,946,109 116,419 6.70
Other borrowings 9,076,531 80,641 3.55
Total interest-bearing liabilities $41,602,684 $464,766 4.47%
Net interest spread 5.63%
Interest income to average earning
assets 10.10%
Interest expense to average earning
assets 3.76
Net interest margin 6.34%
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Reported Quarter Ended 9/30/04
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $34,772,489 $1,083,286 12.46%
Securities available for sale 9,372,713 84,492 3.61
Other 3,122,208 60,635 7.77
Total earning assets $47,267,410 $1,228,413 10.40%
Interest-bearing liabilities:
Deposits $24,713,924 $257,349 4.17%
Senior and subordinated notes 7,218,916 121,166 6.71
Other borrowings 8,674,298 74,523 3.44
Total interest-bearing liabilities $40,607,138 $453,038 4.46%
Net interest spread 5.94%
Interest income to average earning
assets 10.40%
Interest expense to average earning
assets 3.84
Net interest margin 6.56%
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Reported Quarter Ended 12/31/03
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $31,297,123 $969,571 12.39%
Securities available for sale 5,816,001 52,328 3.60
Other 3,679,088 65,884 7.16
Total earning assets $40,792,212 $1,087,783 10.67%
Interest-bearing liabilities:
Deposits $21,604,968 $237,624 4.40%
Senior and subordinated notes 6,734,569 117,791 7.00
Other borrowings 7,661,016 68,267 3.56
Total interest-bearing liabilities $36,000,553 $423,682 4.71%
Net interest spread 5.96%
Interest income to average earning
assets 10.67%
Interest expense to average earning
assets 4.16
Net interest margin 6.51%
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed (1) Quarter Ended 12/31/04
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $76,929,973 $2,476,365 12.88%
Securities available for sale 9,741,355 88,085 3.62
Other 1,789,742 16,940 3.79
Total earning assets $88,461,070 $2,581,390 11.67%
Interest-bearing liabilities:
Deposits $25,580,044 $267,706 4.19%
Senior and subordinated notes 6,946,109 116,419 6.70
Other borrowings 9,076,531 80,641 3.55
Securitization liability 40,291,395 414,797 4.12
Total interest-bearing liabilities $81,894,079 $879,563 4.30%
Net interest spread 7.37%
Interest income to average earning
assets 11.67%
Interest expense to average earning
assets 3.97
Net interest margin 7.70%
(1) The information in this table reflects the adjustment to add back the
effect of securitized loans.
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed (1) Quarter Ended 9/30/04
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $74,398,301 $2,419,685 13.01%
Securities available for sale 9,372,713 84,492 3.61
Other 1,273,583 12,587 3.95
Total earning assets $85,044,597 $2,516,764 11.84%
Interest-bearing liabilities:
Deposits $24,713,924 $257,349 4.17%
Senior and subordinated notes 7,218,916 121,166 6.71
Other borrowings 8,674,298 74,523 3.44
Securitization liability 39,101,228 393,359 4.02
Total interest-bearing liabilities $79,708,366 $846,397 4.25%
Net interest spread 7.59%
Interest income to average earning
assets 11.84%
Interest expense to average earning
assets 3.98
Net interest margin 7.86%
(1) The information in this table reflects the adjustment to add back the
effect of securitized loans.
CAPITAL ONE FINANCIAL CORPORATION
Statements of Average Balances, Income and Expense, Yields and Rates
(dollars in thousands)(unaudited)
Managed (1) Quarter Ended 12/31/03
Average Income/ Yield/
Balance Expense Rate
Earning assets:
Consumer loans $68,678,877 $2,295,802 13.37%
Securities available for sale 5,816,001 52,328 3.60
Other 1,782,263 11,326 2.54
Total earning assets $76,277,141 $2,359,456 12.37%
Interest-bearing liabilities:
Deposits $21,604,968 $237,624 4.40%
Senior and subordinated notes 6,734,569 117,791 7.00
Other borrowings 7,661,016 68,267 3.56
Securitization liability 36,766,829 364,092 3.96
Total interest-bearing liabilities $72,767,382 $787,774 4.33%
Net interest spread 8.04%
Interest income to average earning
assets 12.37%
Interest expense to average earning
assets 4.13
Net interest margin 8.24%
(1) The information in this table reflects the adjustment to add back the
effect of securitized loans.
SOURCE Capital One Financial Corporation
CONTACT: Mike Rowen, V.P., Investor Relations, +1-703-720-3203 or
Tatiana Stead, Director, Corporate Media, +1-703-720-2352, both of Capital One
Financial Corporation
Web site: http://www.capitalone.com
(COF)
